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Landlords are often scared to raise rents because they think doing so gets residents upset and makes them consider moving.

According to studies, however, the real reason that residents get upset is not so much that the rent is going up. Oftentimes, the real issue is that long-term residents see that they are paying more money for rentals that have not been updated to any degree in recent years. At the same time they see friends moving into other rental homes and apartments that have been updated or renovated (with freshly repainted walls and shampooed or new carpeting) and those friends are paying the SAME amount of rent. 

So, the issue that causes residents to feel miffed is not the increase. The issue is that they are not being rewarded for their longevity. They feel taken for granted and feel they are not getting their money’s worth in comparison to other rentals. The residents’ perception that they are not getting as good a value as new residents is a key reason that they gladly move into newly renovated or updated rentals for the same or only slightly more than what they are now paying.

Move-outs can cost between $1,000 - $2,000 or more (with turnover costs, maintenance repairs/renovations, concessions, vacancy loss, advertising, the value of your time, etc.). If residents simply feel their rental is not as nice and fresh as the ones their friends or other residents move into, would not it be worth it to spend a couple of hundred dollars to shampoo their carpet and/or paint their rental or add an inexpensive upgrade or two for a renewal, and a long-term loyalty?

These tips are from contributors to the MrLandlord.com website and newsletter. For a free sample newsletter, call toll-free, 1-800-950-2250, or visit their informative website at mrlandlord.com to register to win a free landlording book.